I was startled to find that the B.C. Assessment Authority increased the value of my property located on the corner of Hwy16 and Kalum Lake Drive by 62.5 per cent when I received my latest assessment notice.
I have had several communications with the assessment authority since and it has provided sales of comparable properties, all of which have a high value and which were then used to calculate my assessment.
These values were based on a snapshot of values as of July 1, 2015 and I agree with those calculations but only up to that date.
Up until then investors still had the confidence to invest in the province-wide advertised Terrace economic boom that supported the increased land prices along Keith Ave. which the assessment authority provided to me to consider.
Unfortunately, as we all know now, the financing for this boom has now collapsed with the worldwide energy industry crash.
And that, in turn, has changed everything back to where we were before for who knows how long.
And that would include real estate market trends and land values which I believe the assessment authority established too early.
Those values are now in question for future developers to decide and revalue to match the present conditions we are all facing now, with the collapse of the predicted economic boom.
In other words, the city has been placed back in the logging industry crash recession, that we all thought was coming to an end.
These are the reasons why I believe my increased land value is premature and now, out of date.
The 20,000 sq. ft. building on the property in question here, has had zero rental income for over twelve months, with no potential prospects to date
And does the increased value mean the $19,000 in taxes paid last year will be raised?
The good news is city administrator Heather Avison has informed me that city council has adopted a provisional 2016 budget with no tax increase for 2016.
I’m therefore requesting that the BC Assessment Authority do the same to assist most if not all of us in the Terrace business community, that have been devastated since the crash of the logging industry, to get back on our feet.
In regards to the recent high prices for Terrace properties, I believe these brave investors unfortunately are obviously about to receive a disappointing negative cash flow experience until something really big actually happens as we all wear expecting.
This I believe includes the three new hotels that are all near completion plus the new companies on Keith Avenue and in Thornhill, who are all caught now in this false economy boom prediction we all desperately hope will eventually still happen.
R. B. (Bob) Karrer,